Credit card fraud has fallen in the UK since the introduction of chip and Pin, but if you are planning to use your card abroad you should still take care. Most European countries are still rolling out chip and Pin, while France, New Zealand and Australia are making their domestic systems compatible with those of other countries. The US, which does not have chip and Pin at all, is now the biggest source of overseas fraud for UK cardholders.

Safe card use abroad is largely a matter of common sense, and observing the following basic precautions can avoid a lot of inconvenience:

· Take several different cards, but only ones you intend using;

· Keep your cards separate from each other;

· Refuse a retailer's offer to pay in sterling instead of local currency (see below);

· Phone the bank's international helpline immediately you have any problems and phone the card company straightaway if your card is stolen. (However, unless the card company tells you otherwise, you do not need to report the theft to the local police. But do get a police report if want to make an insurance claim.)

Apart from the problem of theft, there is also the risk that your card can simply stop working while you are abroad. This is usually because your own bank's computer system has intervened: it intercepts transactions (more often with credit cards than debit cards) that differ from your usual spending patterns and therefore look suspicious.

Josh Towers of Waterlooville took a Barclays debit card on his gap year in Africa. He worked in Tanzania and travelled to Zambia without problems. But in Malawi, the card failed at a cash machine, leaving him without money for food or accommodation. He contacted his parents who asked the bank to phone him. Barclays had stopped his card because of 'unusual activity', even though it had not been used outside Africa and had not caused problems before.

Barclays reactivated his card and noted that he was moving to Mozambique, but warned he might have problems when he returned to Tanzania unless he phoned in advance. The bank admits it can note only one foreign country at a time on its system, and warns: 'When you move country, we need to know again.'

The best advice is to make sure you have your bank's international customer service phone number to hand. This is probably printed on the back of the card but keep a note of it anyway, with a backup copy at the hotel.

The phone number is also useful if a retailer claims that your bank has blocked your card, which is unlikely if there is enough money in your account. Your bank will have instructed the shopkeeper to contact his bank for further security checks, but some staff are just too lazy to comply.

You can insist on phoning your bank on the spot for clearance (be prepared for many security questions) although it is usually easier to offer a different card.

Building society Nationwide warns of a card scam that hits the buyer with very poor exchange rates: 'Some retailers or restaurants abroad offer customers the opportunity to pay in sterling, known as "dynamic currency conversion". We urge cardholders always to pay for purchases in the local currency of the country they are visiting.'

Before you go ...

· Write down the bank's emergency phone number and keep it in several different places

· Check your statement to ensure it has not been misused before you leave

· Tell your bank that you will be using your card abroad

· Give the bank your mobile phone number so it can contact you in an emergency

· Learn by heart the answers to all your security questions in case you need to call the bank to authorise a purchase

· If you are travelling for some time, arrange for a relative to have temporary authority over your account

· Ask for a temporary increase in your credit card limit if you envisage a high-spending holiday

· Check your cards are still active if you have not used them for a long time

· If your card is damaged or will expire while you are away, order a new one well beforehand